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The Central Statistical Organisation (CSO) made a disappointing growth forecast of 6.1% for Gross Value Added (GVA) in 2017-18 as per its first advance estimates, on continued slowing in industrial growth and despite a pickup in services growth. On the expenditure side, consumption spending is expected to soften, while investments are expected to improve from the previous year.

Inflation based on the House Price Index (HPI) declined further to 7.3% in Q2, 2017-18, the slowest in five quarters, though on a trend basis, prices still remain robust. Tier 2 cities are witnessing the fastest increases in HPI, while the metros still largely lead in terms of the absolute levels.

Credit growth continued to inch up in November 2017, indicating that the upturn witnessed during the previous month was not a one off occurrence. At 8.3%, credit growth touched a 14 month high.

The core sector also showed relatively strong growth of 6.8% in November 2017, which is partly on account of a favourable base effect, but also reflects continued improvement in production levels.

External borrowings also came in strong at USD 3bn in November 2017, though they corrected from the highs seen during the previous month.